If a lender agrees to an 80% loan-to-value (LTV) ratio for a property appraised at $135,000, how much is the loan amount?

If a lender agrees to an 80% loan-to-value (LTV) ratio for a property appraised at $135,000, how much is the loan amount?

• A. $16,875
• B. $110,240
• C. $108,000
• D. $117,800

Answer: (C)

To determine the loan amount based on an 80% loan-to-value (LTV) ratio for a property appraised at $135,000, you need to calculate 80% of the appraised value. The LTV ratio represents the percentage of the property's value that the lender is willing to loan to the buyer. Calculating 80% of the appraised value involves multiplying the appraised price by 0.80: \[ Loan Amount = Appraised Value \times LTV \\ Loan Amount = 135,000 \times 0.80 \\ Loan Amount = 108,000 \] Thus, the loan amount that the lender would agree to is $108,000. This figure corresponds with the chosen answer, which correctly reflects the LTV ratio applied to the appraised property value. The other possible answers do not accurately represent the 80% calculation of the appraised value.

To determine the loan amount based on an 80% loan-to-value (LTV) ratio for a property appraised at $135,000, you need to calculate 80% of the appraised value. The LTV ratio represents the percentage of the property's value that the lender is willing to loan to the buyer.

Calculating 80% of the appraised value involves multiplying the appraised price by 0.80:

[

Loan Amount = Appraised Value \times LTV \

Loan Amount = 135,000 \times 0.80 \

Loan Amount = 108,000

]

Thus, the loan amount that the lender would agree to is $108,000. This figure corresponds with the chosen answer, which correctly reflects the LTV ratio applied to the appraised property value.

The other possible answers do not accurately represent the 80% calculation of the appraised value.